The Perfect Storm coming

Fran O'Sullivan points out several things that seem to ellude even the most lightly blinkered lickspittles of the left.

  • inflationary pressure in the economy has been caused by a surge in state spending.
  • Reserve Bank board members are letting it be known to the business community that they are frustrated at the Government's unwillingness to put a clamp on its own spending.
  • The Reserve Bank's single-minded focus on house price inflation carries a monstrous risk.

The best lines are these;

[quote]The headlines we need to see much more of would run like this: "Government keeps spending while Reserve Bank wrings its hands", "Reserve Bank Governor wimps out on publicly tackling Finance Minister's profligacy", or "Bollard resigns in protest at Government's failure to come to party on inflation."[/quote]

The sad thing is the spending is set to increase with an election year looming.